There is nothing more important than doing your own research. Do not follow the herd mentality. Educate yourself before making any SIP investment.
If you are starting your SIP journey as a beginner, it’s important to conduct a thorough research about it and seek advice from financial experts. Investing without proper knowledge and guidance could put your funds at unnecessary risk. It is also crucial to diversify your portfolio to ensure you don’t experience any losses.
Avoid misinformation
Educate yourself before committing yourself to mutual funds. According to financial experts, investing in SIPs solely based on past performance and attractive returns can result in losses. It is essential to conduct thorough research and analyse market trends. Always consult experienced people and then proceed to form your own decisions.
Don’t be inconsistent
According to financial experts, it is advisable not to start or stop SIPs at irregular intervals. Doing so may result in losses of invested amount. It is essential to maintain consistency and discipline in SIP investments to maximize returns.
Not diversifying the portfolio
Financial experts recommend diversifying your portfolio. This strategy helps minimize the impact on your portfolio in case any particular fund or sector experiences negative performance. By spreading your investments across various avenues, you can avoid the risk of financial loss.
Investment amounts
Experts suggest that investments in SIP should neither be too high nor too minimal. By investing the right amount as per your financial needs, you can effectively work towards achieving long-term financial goals.
Choosing the wrong brokerage app
Avoid making the mistake of choosing the wrong brokerage app. To start your SIP journey, start by selecting a good brokerage app. Proceed to complete the KYC process and verify your account details. Then, create a new investment account on the app and start investing.
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Last Updated Apr 6, 2024, 4:46 PM IST